MIFOR ceases to be a significant benchmark from July 1, 2023
Current · Source: Reserve Bank of India · RBI/2023-24/46 · issued 23 Jun 2023 · ~2 min read
Quick answerRBI has approved FBIL to stop publishing MIFOR after June 30, 2023, due to USD LIBOR cessation. MIFOR is removed from the list of significant benchmarks effective July 1, 2023. The updated list now includes six benchmarks, with MMIFOR retained.
The rule, in the simplest words
From July 1, 2023, MIFOR (a rate used for pricing loans and contracts) is no longer a 'significant benchmark' (an important official rate).
Banks must stop using MIFOR and switch to other approved rates like MMIFOR (a similar rate) or MIBOR (another rate).
All contracts, risk models, and reports that used MIFOR need to be updated to use the new rates.
The updated list of significant benchmarks now has six rates, including MMIFOR but not MIFOR.
How it plays out — a real example
A branch operations officer in Indore, Priya, had a few old loan contracts that used MIFOR to set interest rates. After July 1, 2023, she works with her team to change those contracts to use MMIFOR instead, and updates the bank's computer system to calculate loan values with the new rate, so everything stays legal and correct.
What changed
RBI circular dated June 23, 2023, confirms that FBIL has been allowed to cease publication of MIFOR after June 30, 2023, under the Financial Benchmark Administrators Directions, 2019. Consequently, MIFOR is no longer classified as a 'significant benchmark' from July 1, 2023. The updated list of significant benchmarks now includes six FBIL-administered benchmarks, excluding MIFOR.
What it means for you
Banks and lenders that used MIFOR for pricing or valuation must transition to alternative benchmarks like MMIFOR or other approved rates. This aligns with global phase-out of USD LIBOR and reduces reliance on a benchmark that is no longer representative. The change may require updates to contracts, risk models, and reporting systems.
What you must do
Review all contracts and instruments referencing MIFOR and plan transition to alternative benchmarks like MMIFOR or MIBOR.
Update internal risk management and valuation models to remove MIFOR and incorporate new significant benchmarks.
Communicate with counterparties and clients about the cessation of MIFOR and revised benchmark usage.
Ensure compliance with RBI's Financial Benchmark Administrators Directions, 2019 for benchmark transition.
Who it affects
Financial benchmark administrators, Banks using MIFOR for derivatives or forward contracts, Lenders with MIFOR-linked loans or securities, Risk and compliance teams at financial institutions
❓ Common questions
Regulatory timeline
Stated effective dateeffective July 1, 2023
Decoded by BankPulse2026-06-18 04:27 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Why has MIFOR been removed as a significant benchmark?
MIFOR was based on USD LIBOR, which ceased publication after June 30, 2023, and became non-representative. RBI approved FBIL to stop publishing MIFOR, so it no longer qualifies as a significant benchmark.
What benchmarks should we use instead of MIFOR?
The updated list includes MMIFOR, MIBOR, USD/INR Reference Rate, Treasury Bill Rates, Valuation of Government Securities, and Valuation of SDLs. MMIFOR is the direct replacement for MIFOR.
When does this change take effect?
The updated list of significant benchmarks is effective from July 1, 2023, as per the circular.
📜 Read the original circular — full text as issued by RBI
RBI/2023-24/46
FMRD.FMSD.03/03.07.25/2023-24
June 23, 2023
To
All the Financial Benchmark Administrators
Madam/Sir
Status of MIFOR as a Significant Benchmark
Please refer to the RBI circular dated January 01, 2020 and December 01, 2022 , notifying, inter-alia, the financial benchmarks administered by Financial Benchmarks India Pvt. Ltd. (FBIL) viz., Mumbai Interbank Forward Outright Rate (MIFOR) and Modified Mumbai Interbank Forward Outright Rate (MMIFOR) as ‘significant benchmark’.
2. In light of the cessation of the publication/non-representativeness of US Dollar London Interbank Offered Rate (USD LIBOR) settings after June 30, 2023, FBIL has been accorded approval to cease the publication of the MIFOR after June 30, 2023, in terms of provisions of the Financial Benchmark Administrators (Reserve Bank) Directions, 2019 . Accordingly, the MIFOR administered by FBIL shall cease to be a ‘significant benchmark’ after June 30, 2023.
3. The updated list of ‘significant benchmarks’ administered by FBIL is given below:
(i) Overnight Mumbai Interbank Outright Rate (MIBOR)
(ii) USD/INR Reference Rate
(iii) Treasury Bill Rates
(iv) Valuation of Government Securities
(v) Valuation of State Development Loans (SDL)
(vi) Modified Mumbai Interbank Forward Outright Rate (MMIFOR)
4. The updated list of ‘significant benchmarks’ shall come into effect from July 01, 2023.
Yours faithfully,
(Dimple Bhandia)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/46 · issued 23 Jun 2023. The plain-English explanation above is BankPulse’s own independent summary.
Communicate with counterparties and clients about the cessation of MIFOR and revised benchmark usage.
📜 Compliance
Review all contracts and instruments referencing MIFOR and plan transition to alternative benchmarks like MMIFOR or MIBOR.
Update internal risk management and valuation models to remove MIFOR and incorporate new significant benchmarks.
Ensure compliance with RBI's Financial Benchmark Administrators Directions, 2019 for benchmark transition.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (Financial benchmark administrators, Banks using MIFOR for derivatives or forward contracts, Lenders with MIFOR-linked loans or securities, Risk and compliance teams at financial institutions), your first concrete step on “MIFOR ceases to be a significant benchmark from July 1, 2023” is: “Review all contracts and instruments referencing MIFOR and plan transition to alternative benchmarks like MMIFOR or MIBOR.” (RBI issued this 23 Jun 2023).
Circular: RBI/2023-24/46 -- MIFOR ceases to be a significant benchmark from July 1, 2023
Issued: 23 Jun 2023
Action required: Review all contracts and instruments referencing MIFOR and plan transition to alternative benchmarks like MMIFOR or MIBOR.
Action required: Update internal risk management and valuation models to remove MIFOR and incorporate new significant benchmarks.
Action required: Communicate with counterparties and clients about the cessation of MIFOR and revised benchmark usage.
Action required: Ensure compliance with RBI's Financial Benchmark Administrators Directions, 2019 for benchmark transition.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12519&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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